Gold Gone? Germany baffled as Fed bars access to bullion

RussiaToday·Published on Aug 15, 2013

The world is losing trust in the dollar as a safe haven. A major blow came after Germany's Bundesbank demanded the repatriation of a big chunk of its gold being held in the US. Because as RT's Gayane Chichakyan reports, some are concerned the assets of foreign nations in the Federal Reserve are not secure or even there.

The Germans were infuriated when the US Federal reserve didn't even let them examine their own assets properly. Peter Boehringer, the founder and chairman of 'German Precious Metal Association', says that's a bad sign.

10. This isn't good. nt

11. They don't let ANYBODY down there

If the Germans ask for delivery and are refused, THAT is a story. Otherwise it's a headline for a slow news day.

Boehringer is a promoter of sales of gold as a hard tangible investment asset, and if he can stir up some panic that will cause an upward spike in the gold price, it helps him and his business. This comes out and gold jumps up $30 an ounce. What a coincidence.

RT is usually less interested in promoting stories fanned by "investment" promoters who have stuff to sell. I'm surprised, but not impressed. Yet, anyway.

12. Why would it take 7 years to deliver the gold though?

13. The request for physical delivery was never confirmed

Ever since Die Hard III there has been talk about numerous countries taking their gold out of the NY Fed. An outright demand for physical handover would never be ignored. A guy who sells to investors of gold has every interest in making more of this than there is. Every newspaper in Germany and Switzerland would have screaming front page headlines if a direct request for physical repatriation were denied. A request for repatriation has been under discussion, but not formally put to the NY Fed (so far, anyway). A refusal to accommodate such a direct request for physical delivery of foreign property would be page one news on every paper and the lead story on every news broadcast worldwide, and the gold price would jump by 100% and not 3%. Of course, this would please guys like Boehringer to no end. His sales figures would go through the roof, and even Glenn Beck would get to gloat. But somehow, I don't think they are going to get their wish.

14. Ok, thanks-- interesting

15. Well, any request would be serious, and impossible to ignore

But if the request had been made, there are only two possible outcomes: either the delivery is made or it isn't. If delivery is made, then it will make minor headlines, as it would have meant that the German government had followed through on their proposed request for repatriation. If the request is formally made and refused for any reason, it is a huge deal, and it would set off a panic for physical gold that would be unrivaled in modern times.